Forex Marketz Daily Forex News – Fully Markets Update
This morning, the Australian data and the benchmark AUD/USD Forex market, firmed thanks to news that Chinese Caixin private purchasing managers’ index (PMI) showed that the Chinese private sector performed well last month.
The November Purchasing Managers Index from Caixin printed at 51.9. That was the fastest pace of growth since August and well above October’s print of 51.2. There was the slightly disappointing Caixin manufacturing PMI released last week, which made Tuesday’s PMI release with a composite reading of 51.6. That was above the previous month’s print of 51.0
With these particular data series, any PMI score above 50 indicates expansion for the sector in being reported. Together with the official November PMI data, the Caixin PMI shows a Chinese economy heading into the end of the year with clear and solid economic growth.
The official PMI data, released last week, covers large concerns which have a lot of State control. The Caixin PMI looks at smaller, private firms
Chinese Data tends to Support the Australian Currency
Looking at both the official and Caixin purchasing managers’ indices, the economy, China, seems on course to hit Beijing’s growth target for this year. This is a target of 6.5 percent or higher, however, investors and traders need to keep in mind that, economic growth is going to remain at multi-decade lows. Even if growth domestic product expansion is near that target rate.
The Australian Dollar will often act as a liquid proxy for the world’s second largest economy. This is thanks to Australia’s raw material export ties with China. The Australian dollar seems have reacted favorably, to some extent on Tuesday. The Australian dollar rose after the PMI. However, it was already moving higher thanks to some solid local retail data that was released earlier.
